Investment case
Our pet care ecosystem
Our vision is to become the best pet care business in the world.
We provide customers with everything they need to be the best pet owner they can be. Although we report our Retail and Vet Group business separately, in the eyes of our customers they are highly complementary to each other. This allows us to provide complete pet care to customers in a way competitors cannot replicate.
Favourable market dynamics
- Large, growing and resilient market
- Favourable demographics and clear, structural demand drivers
- Significant headroom in core areas such as nutrition, veterinary services and subscriptions
Scalable position in macro-resilient vet market
- Unique join venture model in First Opinion practises incentivises growth
- Largest UK branded network, both in-store and in standalone locations
- Practise maturity represents a significant future cashflow opportunity
Integrated provider of pet care solutions
- Non-discretionary, non-seasonal, small ticket pet products and economically-resilient services
- Well-located nationwide network of experiential and profitable stores
- Subscription platforms providing annuity revenue streams
Scalable omnichannel platform
- Recent investment in automation, distribution and logistics give significant long-term capacity
- Increasing digital capabilities and flexible fulfilment
- Taking market share across all channels
Large and growing loyal customer base
- Most extensive and unique proprietary pet dataset in UK >6.0m active VIP members
- Data-led insights to offer personalised, curated solutions and drive loyalty, retention and lifetime value
Financial strength and resilience
- Good liquidity, with significant headroom on current facility
- Low leverage and strong cash conversion
- Dividend maintained, even during historic business restructuring
Retail
A range of pet products are available both online or from our stores, which offer far more to the pet owner than just a place to buy food and accessories. Through our in-store experience and services, knowledgeable colleagues and award winning VIP loyalty club, we aim to make pet ownership affordable, convenient and rewarding.
Vet Group
We provide the full spectrum of veterinary services through a network of First Opinion practices which deal with all aspects of general veterinary care, as well as access to round-the-clock veterinary telehealth advice and triage through The Vet Connection.
Financial highlights*
Key performance indicators
We remain committed to generating shareholder value and financial returns, and therefore focus on three financial metrics which we believe will be the best measure of our performance. Alongside financial KPIs, we have also developed measures which are specific to each of our four strategic pillars and will ensure we can track delivery against our key objectives.
Financial KPIs
Strategic KPIs
The UK pet care market
The UK pet care market remains large, resilient and in growth, and our adaptable pet care strategy is designed to take share across all sectors.